Trade and Manufacturing Monitor https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor News and insight from our international trade practice group Sat, 29 Jun 2024 09:05:50 -0400 60 hourly 1 BIS Proposed Expansion of Export Controls of Spraying and Fogging Systems Could Affect Agriculture Industry and Spray Equipment Used in Other Industries https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/bis-proposed-expansion-of-export-controls-of-spraying-and-fogging-systems-could-affect-agriculture-industry-and-spray-equipment-used-in-other-industries https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/bis-proposed-expansion-of-export-controls-of-spraying-and-fogging-systems-could-affect-agriculture-industry-and-spray-equipment-used-in-other-industries Fri, 17 Aug 2018 16:49:17 -0400 Earlier this week, the Bureau of Industry and Security (“BIS”) published a request for public comment regarding a proposed expansion of export controls under the Export Administration Regulations (“EAR”) for certain spraying or fogging systems, which are controlled under Export Control Classification Number (“ECCN”) 2B352.i. Currently, the ECCN controls only spraying or fogging equipment that is specially designed or modified for use on certain aircraft that also meet certain technical specifications related to droplet size and flow rate.[1]

BIS is considering expanding the rule by including ground-based systems, eliminating the performance specifications related to droplet size, and reducing the specification related to flow rate, among other potential changes. This would significantly increase export compliance burdens on manufacturers of agricultural products and spray equipment used in other industries, which currently are subjected to relatively low levels of export licensing requirements and related compliance exposure. The products controlled under this ECCN would require specific authorization – an export license from BIS – to most destinations outside the U.S. Implementation of the rules would also create controls over international transfers of development, production, and certain use information and also limit releases of that information to foreign persons (including employees) in the U.S., unless a specific BIS license for release of information to that employee is in place.

BIS is seeking public comment on these proposed changes, including the extent to which the proposed expansion describes items in normal commercial use. Comments are due to BIS on October 12, 2018. If you would like more information on how to comment or what to include in comments, please contact Eric McClafferty at 202-342-8400.

[1] Specifically, the ECCN controls, “Spraying or fogging systems and “parts” and “components” therefor, as follows:

i.1. Complete spraying or fogging systems, “specially designed” or modified for fitting to aircraft, “lighter than air vehicles,” or “UAVs,” capable of delivering, from a liquid suspension, an initial droplet “VMD” of less than 50 microns at a flow rate of greater than 2 liters per minute;

i.2. Spray booms or arrays of aerosol generating units, “specially designed” or modified for fitting to aircraft, “lighter than air vehicles,” or “UAVs,” capable of delivering, from a liquid suspension, an initial droplet “VMD” of less than 50 microns at a flow rate of greater than 2 liters per minute;

i.3. Aerosol generating units “specially designed” for fitting to the systems as specified in paragraphs i.1 and i.2 of this ECCN.

]]> DDTC and BIS Propose New Rules to Continue Export Control Reform Initiative https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/ddtc-and-bis-propose-new-rules-to-continue-export-control-reform-initiative https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/ddtc-and-bis-propose-new-rules-to-continue-export-control-reform-initiative Mon, 21 May 2018 09:11:20 -0400 As part of the ongoing Export Control Reform initiative, the Directorate of Defense Trade Controls (“DDTC”) and Bureau of Industry and Security (“BIS”) has issued proposed rules that would move certain items currently controlled on the International Traffic in Arms Regulations (“ITAR”) to the Export Administration Regulations (“EAR”). The proposed rules would move some items currently controlled under Categories I, II, and III of the U.S. Munitions List (“USML”), including certain firearms, guns and armament, and ammunition/ordnance to new Export Control Classification Numbers (“ECCNs”) on the EAR. After their publication in the Federal Register, there will be a 45-day comment period during which the agencies will accept public comments.

Specifically, the proposed rule targets for a move to the EAR products that are not inherently military, or do not possess characteristics that provide a military advantage to the U.S. These rules, once finalized, would reduce the compliance burden on exporters in the industry. However, the proposed rules do not represent a wholesale deregulation of the industry, as many items would remain highly controlled under the EAR’s “600-series” and other ECCNs, and would still require licenses to many destinations. Affected parties should carefully review the proposed rules and take the opportunity to comment on the proposed reforms.

]]>